pastpractice

Past practice is an unwritten, generally accepted pattern of behavior that develops within a workplace or organization. In contract and labor law, it refers to an established, consistent course of action by which the parties have acted and relied upon, allowing it to influence the interpretation or administration of a written agreement even though it is not expressly stated in the contract.

Past practice arises from repeated conduct that is uniform, intentional, and known to both sides. Over time, it can become binding as a tacit term of the agreement, particularly when the contract is silent or its terms are ambiguous. It is not a formal amendment, but it can effectively govern routine decisions and how terms are applied in daily operations.

Limitations include that past practice cannot override explicit contract terms. It may be superseded by a new contract or explicit written changes, and it can be discontinued if there is clear evidence of cessation. The practice generally must be demonstrably consistent and relied upon by both parties rather than arising from sporadic or unilateral actions.

In practice, past practice is used by courts, arbitrators, and organizational representatives to interpret discipline, scheduling, overtime, or task assignments. Evidence of a stable, long-standing pattern may be required to prove the practice; single or inconsistent actions are typically insufficient to establish a binding past practice.

Relation to other concepts: past practice is closely related to course of dealing, custom and usage, and implied terms in contract law. While it can guide interpretation and administration, it remains subordinate to explicit contract provisions and applicable law.